Profit-taking cuts uptrend momentum in local market

Profit-taking among investors caused the market to snap out of its growth momentum two days before the trading session takes a break for the weekend.

Astro del Castillo, First Grade Finance managing director, said in a phone interview that profit-taking caused the market to step out of the green zone, specifying that there were also pauses in some regional markets overseas.

For her part, Elizabeth Abadillo, analyst in Angping & Associates Securities Inc., agreed that profit-taking has indeed “dragged the market down,” taking note of the hefty fall recorded in the share price of SM Investments Corp. Amid indication of lesser support and confidence coming from MSCI Index to the Henry Sy-led conglomerate, SMIC slumped 7.73 percent on Thursday at a price of P805.50. MSCI is an international provider of investment decision support tools.

But then, Abadillo still said the market may end “possible” within this day. Philippine Stock Exchange index (PSEi) ran off its three-day momentum, losing by 1.14 percent on Thursday, or 75.90 points to 6,580.71, as well as the wider all shares, which fell 0.99 percent, or 40.06 points to 3,999.07.

Reversing early gains, majority of the sub-sectors dipped on the red side as holding firms declined significantly by 2.88 percent, or 173.98 points to 5,866.03. The rest of the sectors were negatively flat except for mining and oil, which went up a bit by 0.45 percent, or 65.58 points to 14,673.66.

From Monday to Wednesday, the market never left the green side as investors turned bullish toward the local stocks. On Wednesday, Philippine shares continued to rise with more than 1-percent gain amid relatively strong corporate earnings. PSEi specifically climbed further by 1.56 percent, or 101.99 points to 6,656.61, as well as the wider all shares, which gathered 1.17 percent, or 46.52 points to 4,039.13.